Buy to Let possible?

Liquidity

I have a large chunk of money saved up, enough for at least 25% deposit on a property, however I am a contractor so I think I will be unable to prove I have a steady income as I have only been doing my current job for 3 months.

I would like to buy a 2 bedroom property so if worst came to worst I could let it out to cover the mortgage (maybe rent one room out and live there while I am working).

However I am a first time buyer so will this be impossible?

I should have a good/excellent credit score

Caz3121

If you are planning to live in it initially then you are not looking for a BTL but for a residential mortgage. If further down the line you look to rent it out then you would ask for consent to let or change to a BTL mortgage

How many years accounts do you have

Liquidity

But I would want to rent 1 room out straight away - can I not go down the BTL route from the beginning?

GMS

Liquidity wrote: »

But I would want to rent 1 room out straight away - can I not go down the BTL route from the beginning?

No because you are planning on living there. Is the BTL route a way to circumvent affordability? If so it is not a good idea and likely to fail anyway.

kingstreet

No, you can't.

Having a lodger is not letting the property. Lenders will be looking for a single let on an assured shorthold basis. You will have difficulty finding a BTL product for a non-owner occupier as lenders are wise to those trying to circumvent the income rules for residential mortgages.

For example, many who have lately become self-employed can't provide the required evidence of income, so they go the BTL route to get around it, then they live in the property. It may not be fraud, as such, but it's certainly deception.

You need a residential mortgage as you intend to occupy the property.